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Can I get more rent for my land in organic versus conventional corn production?

Answer

Organic farming is more than a season of putting seeds in the ground and harvesting the plants. It is a farming system that integrates cultural, biological, and mechanical practices to foster cycling of resources, promote ecological balance, and conserve biodiversity. As such, renting land to an organic farmer has advantages that come from improvements to your land. It requires more than just a lease. It’s a conversation between landowner and farmer, and an agreement based on a few shared understandings. Below are a few things to think about while coming to an agreement.

The price of leasing organic land, like any other farmland, depends first on the quality of the land. Is it rich bottomland, or rocky or sandy terrain? Whether or not it is managed using organic production methods, land has inherent qualities that make it easier to farm, and more valuable as such. This year, even with commodity prices dropping, land prices have remained relatively stable. However, there are other variables that factor into acreage cost. For example, if your land has been fallow for years, it’s likely the organic farmer would need to add soil nutrients and tillage to get the soil ready for planting crops. Organic pastures can be a good option for previously fallow land, but only with good and diverse forage, fencing and water in place to give the land value as pasture. Additionally, it’s very important to test the soil and have it evaluated by a professional consultant so you both know what it holds to begin with.

Organic farmers will want to rent the land for a longer term because they will need to plant a five-to seven-year rotation to build up the soil and grow a cash crop. The farmer and landowner should discuss if the price will fluctuate between when they are growing higher value crops like corn and beans and years they are soil-building by growing small grains and hay. The rental fee could be an average of these numbers and have the same fee each year, or the lease could reflect the crop rotation plan and be less during the lower crop value years.

Ultimately, the price you’ll receive comes down to a shared agreement between you and the farmer, taking into account the benefits to your land from the conservation and soil-building practices of organic land use, lease term, and value of farmland. If you have good farmland that is ready to be certified as organic you might get 5-10% more than the average per acre fee in the county, but only if the above outlined variables are in your favor. Local extension agents are a great resource to use in finding out the price of cropland rental in their counties, and would be able to give an approximate dollar range for each county. Once all of these factors are determined, a lease can be drawn and upheld that meets the needs of the farmer and the organic landowner.

For more information about writing this type of lease, see the Marbleseed fact sheet “How to Write a Conservation-Focused Land Rental Agreement.”

Posted: Feb 2016
Answer By: Jennifer Nelson